Projected Maharashtra economy indicates slowdown: Congress

Senior Congress leader Prithviraj Chavan today said the projection of 7.3 percent growth in Maharashtra's economy in FY 2017-18 is a reflection of "slowdown".

He attributed demonetisation and "hasty implementation" of the Goods and Services Tax (GST) as the reason behind the "slide" in the state economy.

As per the Economic Survey presented in the state legislature today, a day ahead of tabling of the Budget 2018-19, the economy is expected to grow by 7.3 percent in (fiscal) 2017-18 over the previous year.

"The (projected) growth rate of 7.3 percent from the 10 percent (of the previous year) reflects the ground reality that the economy has suffered due to demonetisation and flawed implementation of the GST," the former chief minister said while addressing reporters.

The Economic Survey proves that Maharashtra's economy is "shrinking" which is a cause of worry.

"The negative growth of 8.3 percent in the agriculture sector is indicative of a farm crisis. When the agriculture sector is seeing a negative growth how can one say that they will double the farm income? The government should define how they propose to double the farm income," he asked.

Chavan said the industrial growth of Maharashtra slumped to 6.5 percent from 7.2 percent in 2015-16 and 6.9 percent in 2016-17.

"In the last three years, 3557 industries have closed down while the job growth too is minimal," said Chavan, who had served as the Minister of State in the Prime Minister's Office (PMO).

Though the Economic Survey stated the state debt is Rs 4.13 lakh crore, the figure is likely to go up to Rs 4.40 lakh crore, he said.

"If the government takes loan, then it should be utilised for welfare schemes. However, the state government is not giving money for the farm loan waiver and development projects that generate employment," said the Congress leader.